Interpublic adds three new directors to board in deal with Elliott

Global advertising firm Interpublic Group, parent company of agencies including McCann and FCB Inferno, has added three independent directors to its board as part of an agreement with activist hedge fund Elliott Management.

The candidates were identified through a search process as well as an evaluation of independent candidates recommended by Elliott Management, one of the company’s largest shareholders, holding 6.9 per cent of its stock.

The board, which now comprises 10 directors, has also established a finance committee that will focus on achieving the company’s target of fully competitive margins.

“IPG has been successfully executing on a strategic plan that has enabled us to produce strong top-line growth and increased profitability, while delivering industry-leading total shareholder returns over the past five years,” said Michael Roth, Chairman and CEO of Interpublic Group.

Roth also mentioned that Interpublic will continue to work towards achieving its previously announced target of 13 per cent or better operating margin. Jesse Cohn, head of US equity activism at Elliott Management, said in a statement that the firm is pleased with the dialogue that took place and is looking forward to “ongoing collaboration”.